This graph shows the 10-year Treasury yield (orange line) and the CalPERS discount rate (blue line) against time. CalPERS is assuming a continued rate of return of 7 to 8 percent, even though interest rates have been falling since the 1980s. See a larger version of this graph at http://www.paloaltoonline.com/news/reports/1507940086.pdf Graphic by J. Bulow, Stanford GSB, courtesy of Eric Filseth.